Western Alliance Bancorporation Appears Undervalued With A Rosy Earnings Outlook
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Western Alliance Bancorporation (WAL) is considered undervalued with a positive earnings outlook. Rate cuts are expected to boost mortgage demand and revenue, but may pressure net interest margins. Loan growth is supported by housing markets and low borrowing costs, though job market struggles in key states pose challenges. EPS is projected to rise to $6.88 in 2024 and $8.10 in 2025.
December 10, 2024 | 5:30 pm
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Western Alliance Bancorporation is expected to benefit from rate cuts boosting mortgage demand, though net interest margins may be pressured. Loan growth is supported by favorable housing markets, but job market struggles in key states are a concern. EPS is projected to increase in 2024 and 2025.
The article highlights that rate cuts will likely increase mortgage demand, positively impacting mortgage banking revenue for WAL. However, these cuts may also pressure net interest margins. The housing market and low borrowing costs are favorable for loan growth, but job market struggles in WAL's main states could pose challenges. The projected EPS growth for 2024 and 2025 suggests a positive outlook, supporting a likely short-term positive impact on WAL's stock price.
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